French 2026 Budget Crisis: Parliament Fast-Tracks Special Law, Consultations Begin

Building on the joint committee's failure on December 19, Parliament is accelerating adoption of a special law early next week to secure temporary state financing from January 1, while Prime Minister Sébastien Lecornu launches consultations with party leaders starting Sunday. Impacts include the suspension of the MaPrimeRénov' program.

Following the confirmed deadlock of the joint parliamentary committee (CMP) on December 19—as reported earlier—between deputies and senators on the 2026 finance bill, the finance committees of the National Assembly and Senate have called meetings for Monday and Tuesday. They will hear Economy Minister Roland Lescure, review the draft special law, and prepare for debates and votes: Assembly first, then Senate on Tuesday evening. A cabinet meeting is set for Monday afternoon after President Emmanuel Macron's return from Abu Dhabi.

This interim law authorizes collection of existing taxes, limits spending to essential 2025 services via decree, and mirrors the measure used in 2024 post-Barnier government fall. It blocks non-essential expenditures, prompting Housing Minister Vincent Jeanbrun to confirm MaPrimeRénov' suspension from January 1, stating on France 3: “No budget, no window.” He urged swift budget adoption to resume the energy renovation aid, paused earlier in 2025.

Prime Minister Lecornu, whose compromise efforts failed, begins consultations Sunday with Gabriel Attal (Renaissance) and Paul Christophe (Horizons), phone calls to Marc Fesneau (MoDem) and Christophe Naegelen (LIOT), then Monday meetings with Les Républicains, Socialist Party (10:30 a.m.), Communist Party (3 p.m.), and Ecologists (4 p.m.).

Public Accounts Minister Amélie de Montchalin called it a “service minimum” on BFM-TV, emphasizing a full budget by end-January with some tax hikes. LR President Bruno Retailleau advocates Article 49.3 for a responsible budget with cuts, while rapporteur Philippe Juvin proposes special law Tuesday followed by 49.3 in January. Ordinances face constitutional hurdles.

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As anticipated amid pre-CMP tensions, the joint committee on the 2026 finance bill failed on December 19, prompting Prime Minister Sébastien Lecornu's government to advance a special law for parliament review on Monday evening to avert a state financial shutdown from January 1.

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